Home Purchase Loans

Most people who buy a home in New York or anywhere else use a home purchase loan, also called a mortgage, to pay for it. Before getting a mortgage, there are some things you should know.

Credit score is king

The most important factor in getting a mortgage and the interest rate you get is a credit score. People with high credit scores, around 760 and above on the FICO scale, get the best interest rates. That’s important because even an extra quarter percentage point can mean thousands of dollars in finance charges over the life of the loan.

Pay attention to the payment

When deciding how many homes they can afford for a home, most people focus on their monthly payment. But when calculating that payment, it’s important to keep in mind all that goes into it. Your monthly mortgage payment will include more than just you loan principal and the finance charges you owe. Your property taxes, homeowners insurance and any mortgage insurance you may have to pay are all added onto your monthly mortgage payment. That means a $1,000 monthly payment for principal and interest could easily grow to $1,400 or more by the time you account for those other items.

Don’t forget about closing costs

To get your mortgage, you have to pay closing costs, which include things such as title insurance fees and transfer taxes. In New York, those fees are among the highest in the country, costing more than $5,000 on a $200,000 mortgage. We are able to roll those costs into your mortgage, you usually have to pay them up front.